Ireland has benefited from the euro, explained John Hurley, the governor of the Central Bank of Ireland, but challenges remain in dealing with rising credit growth and housing prices.

"The key challenges for Ireland in the years ahead are to maintain its competitiveness so as to protect and sustain living standards and to deal with the effects of any asymmetric shocks hitting the euro area," he said.

"In that regard, it will be necessary to continue to have flexible labour and product markets